FOR YOUR INFORMATION
We share below a number of recent developments. As always, we rely on FIVS Members to apprise us of noteworthy matters. Please contact the FIVS Secretariat with items that may be of interest.
International Trade
France: Plans to compensate wine producers for new U.S. import tariffs – France’s Ministry of the Economy and Finance has reportedly responded to new U.S. import tariffs by announcing plans to compensate French winegrowers. Affected wine producers will reportedly be allowed to benefit from compensation up to 20% of monthly turnover (as much as €200,000), effective at the end of 2020. The Ministry is also reportedly working with banks and European authorities in Brussels to postpone repayment of State Guaranteed Loans for one year. The Ministry is also considering strengthening support for French industry exports.
Ukraine: The Government lifts duties on EU wine imports – The Ukraine has reportedly lifted duties on wine imports from European Union member states, effective 01 January 2021. The Ukraine was obliged to introduce zero import duties on certain goods within seven years after signing the Deep and Comprehensive Free Trade Agreement with the European Union. The earlier duty stood at EUR 0.3-0.4 per liter.
United States: U.S. suspends tariffs over digital services tax – The U.S. Trade Representative reportedly has indefinitely suspended the imposition of 25% tariffs on imports of French goods, which are valued at around $1.3 billion annually and were due to go into effect on 06 January 2021. The USTR said suspending the action against France would allow the United States to pursue a coordinated response in its investigations into similar taxes in Britain, India, Italy, and other countries. The United States had announced the tariffs in July 2020 after France imposed a digital services tax on U.S. companies such as Amazon, Apple, Facebook, and Google.
- On 06 January 2021, the U.S. Trade Representative issued findings in its Section 301 investigations of digital service taxes adopted by India, Italy, and Turkey, concluding that although each of the taxes discriminates against U.S. companies, the United States would not take any specific actions in connection with the findings at this time.
Taxation
India: West Bengal’s WHO-approved tax policy reduces alcohol consumption – A Bengal government official reported that alcohol beverage consumption dropped, while government revenue increased by 24% during November and December 2020 due to the implementation of new excise taxation policies approved by the World Health Organisation. The article notes the role that the Bengal government played in the WHO’s initiative on reducing the harmful use of alcohol with cost-effective interventions.
India: Alcohol beverage excise duty cuts in Uttar Pradesh – The government of Uttar Pradesh reportedly announced a new alcohol beverage policy on 09 January 2021, which includes cutting excise duties on alcohol beverages. Locally produced wine will be exempt from excise duties for five years, and vintners may now sell wine through taverns on their premises. Brand registration, label approval, and bar and micro-brewery licenses may now be renewed for three years, rather than annually. Premium retail shops will now be permitted at airports and may include wine-tasting facilities and the sale of drinking accessories.
Dietary Guidelines
“Junk science” – Australia’s reputed $160 billion drinks industry is contesting new governmental consumption guidelines and attacks by some in the academic community. Australia’s alcohol drinks sector has started the year by pointing out weaknesses in the new government drinking guidelines and disputing claims by some academics that it provides a “distorted view” of scientific evidence in the case of alcohol consumption.
Harmful Consumption
Finland: Alcohol-related deaths three times higher among men than women – According to data from Statistics Finland, 1,718 people died in Finland during 2019 from alcohol-related diseases and alcohol poisonings: 1,306 were men and 412 women. Most of the deaths were reportedly caused by diseases related to long-term alcohol use, such as liver and heart diseases. Alcohol poisonings accounted for 12% of the deaths, although this represented a decline from the previous year.
Research
New study on detecting wine fraud – Researchers at the University of Adelaide have reportedly found a new and simple method using fluorescence spectroscopy to help detect wine fraud, correctly identifying Cabernet Sauvignon wines from three different regions of Australia and one from Bordeaux. The study published in the 15 January 20215 issue of Food Chemistry shows great potential for authenticating the geographic origin of wines. The technique may have other benefits, including in the area of phenolic and wine colour analysis, as well as detecting the presence of smoke.